New Mexico AG: DOJ withholding unredacted Epstein files, blocking state probe

New Mexico Attorney General Raúl Torrez is publicly accusing the U.S. Department of Justice of sitting on unredacted Epstein files that his office says it needs to move a state criminal case forward. New Mexico's top law enforcement official on Thursday accused the U.S. Department of Justice of hindering the state's investigation into Jeffrey Epstein by withholding unredacted files on the late sex offender.

What Torrez is alleging

Torrez sent a new letter to Acting U.S. Attorney General Todd Blanche and Associate Deputy Attorney General Diego Pestana demanding that the U.S. Department of Justice immediately turn over unredacted Epstein records that the USDOJ has held for years.

Torrez first requested original documents related to the convicted sex offender's Zorro Ranch property in February. He said he reiterated the request five times in the following months, through a range of channels, but Justice Department officials so far had not responded.

The records, he said, contain names of survivors, witnesses, co-conspirators and other individuals who may aid the long-delayed state investigation into the deceased financier's crimes in New Mexico.

Why the state says the clock is ticking

Torrez framed the delay as actively damaging any future prosecution. “Every day that the USDOJ withholds these records, the foundation upon which a New Mexico prosecution could be built erodes,” Torrez wrote in a scathing letter to Acting Attorney General Todd Blanche on June 30 that was publicly released on Thursday.

In March, Torrez said investigators faced significant obstacles in the Zorro Ranch probe. He cited the years that had passed since Epstein's alleged crimes, possible deterioration or disappearance of evidence at the ranch which was sold in 2023, and possible jurisdictional issues surrounding any potential prosecutions.

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The DOJ response

A Justice Department spokesperson told CNN that the agency “substantively responded last month to requests from the New Mexico Attorney General's Office.”

A Justice Department spokesperson, Kiersten Pels, said the agency welcomes New Mexico undertaking additional investigation of the Zorro Ranch and stands ready to provide necessary assistance with New Mexico's investigation.

Political backdrop

Political pressure to release U.S. Department of Justice files on Epstein has dogged President Donald Trump during his second term. He has suggested the country move on from investigating the late financier's crimes.

Some members of Congress have been allowed to view the unredacted documents but they had to travel to a DOJ annex, sit at one of four DOJ-owned computers, use a clunky and convoluted software system provided by DOJ, and search for and read documents while DOJ staffers look over their shoulders, according to Democratic Rep. Jamie Raskin, the ranking member of the House Judiciary Committee.

Options market and stocks to watch

The Epstein-file story is not a direct market catalyst, but the political overhang around the Trump administration and DOJ can shape sentiment in policy-sensitive names. Traders watching for headline-driven moves may want to keep an eye on:

DJT — Trump Media & Technology Group tends to react to any political-risk narrative tied to the administration.

TSLA — sensitive to Washington headlines given the ongoing political dynamics around Elon Musk and federal policy.

META and GOOGL — content-moderation and platform-liability chatter tends to spike around high-profile document releases; worth watching flow if more files drop.

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